The shipments of smartphone processors decreased by 21% YoY in Q3 2026, indicating a significant decline in the smartphone components market. This is significant as it indicates a change in consumer behavior. Users are keeping their phones longer and not upgrading as much. As a result, manufacturers are lowering inventory to align with the lower demand.
Apple gains 4 points to trail Qualcomm by just 1 percentage point
In the Q3, MediaTek stayed on top of the market despite the overall decline, according to a new report from Counterpoint Research. MediaTek still commanded the top spot in the smartphone SoC market, accounting for 28% of the market (from 34% before). MediaTek still dominates the high-volume smartphone SoC market.
In second place, Qualcomm saw its market share fall to 22% (from 25% before). Apple took third place with 21% market share, up four points. It's nearly tied with its competitor. Samsung Semiconductor increased to 8% market share (up two points from the previous quarter).
It seems like the main factor in the changes we're seeing in the market is higher prices for DRAM and NAND memory. The higher memory prices are making users less likely to buy new phones, so manufacturers have to scale back production. Major players in the market shifting positions is changing the landscape for smartphone system-on-chip makers.
The Q3 2026 market numbers underscore a trend toward a tighter market, where the major players are seeing their share get whittled away by others (Apple, Samsung, etc.). In this new environment, consumers can expect a slower upgrade cycle as manufacturers adapt to the lower demand and rising component prices.
Source: NotebookCheck
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